Plans to create a 24-hour respite centre for children with disabilities at a derelict building have been given the go-ahead by the council.

The privately-run facility to be created at the Masonic Hall in Oswaldtwistle will create up to 35 jobs and cater for around 20 children during the day.

It comes as campaigners battling to save Hargreaves House respite centre for disabled children are fearing that it will not be replaced with a new council-run centre if it is closed by the county council to save costs.

Supporters of the Observer-backed campaign to save Hargreaves House claimed victory earlier this year after council bosses confirmed a new state-of-the-art centre would be built in East Lancashire.

Hyndburn was believed to be a preferred location.

However, the council have now said no decision will be made until a consultation is completed in February 2013.

Campaigners said they don’t know if they will benefit from the new centre at the old Masonic Hall or if referrals will be made to the privately-run centre.

But Andrea Brighouse, director of My Life My Choice Ltd which will run the new centre, said she was ‘delighted’ to see plans for the new centre approved.

Mrs Brighouse, who runs a similar facility in Blackburn called Blue Tin Roof said: "We are over the moon that we have been given planning permission.

"Builders and construction workers will be on there soon and we hope to be up and running by July next year."

The centre will include six bedrooms for overnight stay, an outside play area, before and after school clubs and cater for off-site activities including sports, swimming and holidays.

Mrs Brighhouse said the centre would complement Hargreaves House but she did not know if referrals will be made there if the centre closes.

County council bosses will carry out a consultation over their children’s disability services from November.

Hargreaves House campaigner Pamela McCullagh fears the centre could be lost.

She said: "It’s a very difficult situation.

"The council seem absolutely intent on only having three units in Burnley, Lancaster and Preston.

"We have a well-established service with a highly trained staff that know the children very well.

"There’s a massive difference between that and a private company.

"We are going to continue fighting and hopefully we will get what we want in the end or at least one more unit instead of three."